The Rundown - February 18, 2022
The latest news and notes from the nonprofit and philanthropic sectors
The Rundown - The Under The Hood Edition
This weekend is one of the first signs of Spring - the Daytona 500 will be run on Sunday afternoon. Now, I will be the first to admit that I am not a fan of stock car racing. However, my father was a huge fan of the sport. So much so, that Sunday afternoons in the Spring and Summer were filled with him in his recliner watching the races. I’d be on the floor with my matchbox cars running on my own races.
Even from that young age, I found the Daytona 500 a hopeful sign that Winter was almost over. Seeing people in the sunshine wearing t-shirts and the green grass of the infield gave a feeling that not too far away that those days would be here in Ohio.
So, it’s in honor of the Great American Race that we go “Under the Hood” this week and look at a few written articles that really struck a cord with me. We will go in depth and take a look at some of the ideas and thoughts that might be behind these thoughtful pieces and put a spin on it that might be helpful for those in the nonprofit and philanthropy fields.
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Looking under the Hood of Philanthropy, Capitalism and Pundits that don’t understand our work.
Yes! Magazine had this article on the “Disaster of Philanthropy and Capitalism”. This was an interesting read and it reflects a growing (and probably worrying) trend of some circles of current thought when it comes to philanthropy and nonprofit organizations. To help illustrate this point, here is what I thought was the most interesting part of the piece:
“What to make of the fact that growing philanthropy and growing inequality seem to go hand in hand?” Linsey McGoey asks in No Such Thing as a Free Gift: The Gates Foundation and the Price of Philanthropy. Increasingly, philanthropy, she notes, deprives treasuries of tax revenues that could otherwise be better spent to help the poor. And who holds the Bill Gateses of the world accountable? Who weighs the difference between tax revenues not paid to the public treasury against the purported benefits of unsupervised philanthropy? The answer is no one.
Perhaps it’s just me, but there is a pendulum swinging in the nonprofit world. For years, nonprofits were hounded for not being well run. These organizations needed to implement practices to make them “more business like” (cue the cries of joy from our conservative friends) or “more sustainable” (cue the same cries from our liberal friends).
What did these nonprofits do? They developed mission and vision statements, they created strategic plans. They were taught to use logic models and the Theory of Change model. All helpful practices to get a disparate set of actors (boards, staff and volunteers) all moving in the right direction on helping solve these big problems that these organizations were committed to change.
And now, jumps in thoughts like the ones above.
Do people who actually write articles like this know how philanthropy and nonprofits ACTUALLY work? I sincerely doubt it.
Well established nonprofit organizations aren’t those that are peddling themselves to the highest buck. The well established nonprofits are the ones that are adhering to their aforementioned vision and mission statements and their well crafted strategic plans.
It’s as if the writers of this article think that if Bill Gates waved a $10 million check to teach dogs square dancing, every nonprofit would sign up to do it. Of course we know the answer is no. The lessons of sustainability and business practices taught us not to simply chase money.
A second point that can’t be missed is that there is a HUGE difference between paying taxes and making philanthropic donations. Taxes are a non-voluntary event. Every time I earn a dollar or spend a dollar, there is an event that gets taxed. I don’t get to decide how much the tax is, let alone where those tax dollars go.
However, when I make a voluntary philanthropic contribution, I get to make the decision of how much I give and where I give it to. Articles like the one above are becoming more and more frightening. Call me paranoid, but there is becoming a whole class of punditry that shows very little understanding of our sector that wants to decide who we should make charitable contributions to and how much we should give. Call me crazy, but that sounds more like a tax than a contribution.
But, hey, those are my thoughts. I could be wrong. Your input is always welcome at pinnaclestrategiesltd@gmail.com.
Looking Under the Hood of Corporate Giving
Fortune Magazine has this article on an idea for a new way for corporations to give to philanthropic causes. There main argument is that corporations should ditch their corporate foundation model and move directly into public charities.
On the face, it’s an interesting concept. Who wouldn’t want to see the local manufacturer for example be more involved in their work in charitable causes? But, then after a few minutes of thinking about this, there were some real struggles I had when I thought about this.
Think about the above mentioned manufacturer. And let’s say they would much rather be in the public charity business (which implies a more direct way of doing charitable work) than simply just cutting check (which is more in line of the corporate foundation model). I am wondering out loud how it would look if said manufacturer started to have a food pantry under their roof. Logistical concerns start to add up. Who would run it? Where would it be? Would there be concerns about non-employees on the property (some industrial plants can be areas with very strict visitor protocols)? The concerns are real and numerous.
I am sure more than one person would think, “Couldn’t we just support those groups in our community that are already doing this work?”
Maybe what being exposed is one of the biggest struggles of our sector…we are really bad at telling our story.
And I get it. Sometimes we are too busy (or too burned out) to tell the stories of the people we serve. In some respects, our funders and foundations beat the narrative story-telling sense out of us wanting us to focus on numbers! Outputs! Outcomes!
And then depending on the work you are in, you don’t hear the success stories all the time. Those people you helped in their time of need may come back to tell you how great their doing, but many times they don’t. They just move on with their life. A new town, a new job, a new family. These are things that lead them to leave us behind.
But back to the article, if corporations are looking to get more involved in the nonprofit sector more than just writing a check…great! Work with those organizations you know and ASK them how you can help them achieve their mission and vision.
Economic Gears Start to Shift in 2022
Fast Company is looking into their crystal ball here to see a few shifts philanthropy will be making this year.
The first major shifts are inflation and it’s closely related cousin, rising interest rates. Fast Company sees this is having an immediate negative impact on giving rates.
I am no economist and that impact might be right. However, research has always indicated that growth (or retraction) of the S&P 500 is a more reliable indicator of whether charitable and philanthropic giving will grow or shrink in any giving year.
Regardless of how the numbers grow (or not), inflation will certainly make things more expensive. The costs of everyday items we need to do our work in this sector are sure to rise and with the increased cost burden, those organizations that serve under-resourced families may see needs for their services quickly rise.
A final shift the contributor to Fast Company sees is the continued disruption in “big philanthropy”. The entrance of new players like Mackenzie Scott and Jack Dorsey, who are more interested in having a direct hand in giving away more money with fewer strings attached is a new model to what is seen as a stodgy, staid version of philanthropy. Only time will tell if these new changes will stick.
And it’s with that thought that right now we are more than likely in the middle of a large wealth transfer. The average baby boomer will turn 67 this year and by 2030, all boomers will be over 65. As a generational cohort, boomers are large in number and have amassed significant wealth. As they pass away and their legacy goes to a new generation, what will the next generation of philanthropy look like? The above mentioned Mackenzie Scott is 51, Jack Dorsey is 45. Perhaps GenX philanthropy will look a little different than what we are used to seeing.
Now Hiring!
The Wright State University Foundation (Fairborn/Dayton, OH) is looking for a new Assistant Director of Annual Giving. You can look at the job announcement here. I am a proud graduate of Wright State and have fond memories of my town there. I am sure it is a wonderful place to work.
The YWCA of Dayton is looking for a new Vice President of Development. You can check out the job announcement here!
The combined Miami and Shelby County Chapter of Habitat for Humanity is currently looking for a new Development Director! Check the job out here on LinkedIn!
Our good friends at the Lilly School of Philanthropy at Indiana University are hiring for three positions. You can learn more at this website posting here! I bring this up, because I have seen the value first hand of the Lilly School as a student in their professional development programs and have gotten to know many of the instructors, professors and staff members. They are a high quality group.
Also, the Northern Illinois Food Bank is looking for an Innovation Manager, take a look at the position description here! And they are also looking for a Innovation Business Design Lead; description here! For our Chicagoland area friends (we know you are out there!) check it out!
If you have a position you are hiring for, please feel free to email pinnaclestrategiesltd@gmail.com and we will run an announcement for three weeks!
Is your New Year Resolution to Learn Something New?
If your New Year Resolution was to sharpen your skills and meet new professionals in the field, I would encourage you to look at some of the offerings of The Fund Raising School at the Lilly School of Philanthropy at Indiana University’s campus in Indianapolis. The professional development school has great programming both on-line and in-person both in Indianapolis and at other sites across the country. Take a look at their course offerings here!
What Can We Work on Together?
Did you know that Pinnacle Strategies works individually with nonprofit and public sector leaders to help them solve problems, achieve goals and gain confidence in their roles?
Why?
Because, this work is hard and it’s often a lonely road. Our nonprofit and public sector leaders need people that they can talk to to get solid advice and encouragement to do the work that is in front of them. If you feel that this can be of value to you, or a member of your team, please reach out to pinnaclestrategiesltd@gmail.com and let’s talk.
An Excerpt from the “Tools, Tips and Tricks” Newsletter
The Pinnacle Strategies, “Tips, Tools and Tricks” newsletter comes out every Tuesday and is available for a paid subscription for as little as $7/month. And with our paid newsletter, we are trying something new here at Pinnacle Strategies!
The Substack platform now allows videos and it seems like a great tool to use for our paid subscribers to get a more interactive and more in-depth view of some of the tips, tricks and tools that you can use to help run your nonprofit organization!
If you haven’t signed up for the paid version of the newsletter…what are you waiting for? Especially when each subscription receives a free gift!
A Quick Note of Thanks!
Thank you readers! I am not sure how it happened, but ever since the first of the year, this newsletter has taken off, subscriber growth has more than doubled this past month! And many of you have reached out to me and it’s amazing to see that this newsletter has readers in Canada, Italy, Kenya and all over the United States. To say that we have an international newsletter, is not an exaggeration!
I know many of you have shared this with your friends and colleagues and I am very grateful. Thank you!
Other Ways to Connect
Our coaching practice has openings starting here in 2022. If you are interested in working with me to get your nonprofit organization on a track to achieve the big missions you have for your organization, please reach out to me at pinnaclestrategiesltd@gmail.com.
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